Asset Quality Score
Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.
On Bankrate's asset quality test, EAST TEXAS PROFESSIONAL scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.
Troubled assets made up 4.00 percent of EAST TEXAS PROFESSIONAL's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.